What is the estimated staff reduction percentage for Media Chinese due to AI?

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Media Chinese International Ltd May Reduce Workforce by Up to 44 Per Cent Due to AI Integration

Media Chinese International Ltd is projected to potentially reduce its workforce by as much as 44 per cent over the next two years as it integrates artificial intelligence (AI) into its operations. The company anticipates that at least 30 per cent of its staff could be laid off following the adoption of AI technologies. These estimations suggest a significant potential reduction in employee numbers, from its current workforce of approximately 1,800 individuals down to around 1,000 employees.
Workforce Reduction Estimates

Kenanga Investment Bank, in a research note, detailed the potential impact of AI integration on Media Chinese's staffing levels. The company has estimated that a minimum of 30 per cent of its workforce could be affected by layoffs within a two-year timeframe post-AI adoption. This figure aligns with a broader potential reduction of up to 44 per cent as part of ongoing restructuring efforts.
AI Integration for Operational Efficiency

The integration of AI is intended to streamline Media Chinese's operations. The company is exploring AI tools that can enhance content distribution and assist in content creation, such as generating accompanying videos and utilising digital human presenters for news narration. These advancements are expected to lead to significant efficiency gains, thereby necessitating a reassessment of staffing requirements.
Staff Training and Skill Development

In preparation for the adoption of AI, Media Chinese has initiated internal training programs for its staff. The objective of these programs is to equip employees with the necessary skills to effectively utilise AI tools. This proactive measure aims to facilitate a smoother transition and ensure that the existing workforce can adapt to the evolving operational landscape.
Financial Context and Restructuring

These workforce adjustments are occurring within a context of financial challenges for Media Chinese. The company reported its largest net loss since 1998 for the financial year ending March 31, 2024, amounting to RM61 million. Manpower represents the most significant cost driver for the company, accounting for approximately 50 per cent of its total costs, making staff reduction a key area for cost optimisation.

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What is the estimated staff reduction percentage for Media Chinese due to AI?

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